(6th meeting) Intergovernmental Negotiating Committee on the United Nations Framework Convention on International Tax Cooperation

Good afternoon, everyone.

The sixth meeting of the Committee is called to order. The Committee will resume its consideration of Agenda Item 4, entitled Framework Convention Protocol 1 on Taxation of Income Derived from the Provision of Cross Border Services in an Increasingly Digitalized and Globalized Economy and Protocol to on the selection of the subject of Protocol two.

So now I'm going to read my proposal for the second Protocol.

The Intergovernmental Negotiating Committee on the United Nations Framework Convention on International Tax cooperation recalling paragraph 5 of resolution 79235 decided that the prevention and resolution of tax disputes shall be the subject of Protocol 2 as drawn from the list of priority areas set out in paragraph 16 of its terms of reference document A AC 2982 on the understanding that subjects not selected from paragraph 16 of the terms of Reference shall be considered along the subjects listed in paragraph 17.

So I can re read it again a little bit slower. The Intergovernmental Negotiating Committee on the United Nations Framework Convention on International Tax cooperation, recalling paragraph 5 of resolution 79235 decided that prevention and resolution of tax disputes shall be the subject of Protocol 2 as drawn from the list of priority areas set out in paragraph 16 of its terms of Reference on the understanding that subjects not selected from paragraph 16 of the Terms of Reference shall be considered among the subjects listed in paragraph 17. Paragraph 17 is the future Protocols. So the other Items. The other three items not chosen

in paragraph 16 will go and be included now as a part of Future protocols in paragraph 17.

So. So I open the floor.

Poland.

Thank you, Mr. Chair. I am speaking on behalf of 27 EU member states. Having listened to the discussions in the room and acting in good faith, EU Member States would like to express their position on the Chair proposal for the Second Early Protocol of the United Nations Framework Convention on International Tax Cooperation. While the EU Member States still have some concerns regarding the exact scope of the potential Protocols and uphold the view that the proper analysis will be required for working on the specific topic, the EU Member States can, showing flexibility, consider perversion and resolution of tax dispute as a topic of the second Early Protocol.

Thank you very much,

Saudi Arabia.

Thank you. Chair. I'm a bit confused here since if we go and look to the General assembly resolution, we are saying that. I mean, Let me read it.

Paragraph three also decide to establish a Member State led open and Intergovernmental Negotiation Committee for the purpose of drafting the UN Framework Convention on International Tax Cooperation and two early Protocols. So we'll have the upcoming three years to develop two early Protocols. So how the Language being proposed now would fit into the overall scheme of things here. Are we going to work on that after the three years or what is the proposal here? Thank you.

The TR stated that two protocols will be developed simultaneously. One was identified in the terms of reference and the second was left to the first org session to decide about it among four items. And that's what we did now. So now we select the second one then. Now we have two to be developed simultaneously with the convention in three years.

So within the three years we'll do the convention and two protocols. The first one is a cross border services and the second one. Now what we are proposing is this dispute prevention and resolution. Hopefully.

Hopefully this clarify your inquiry.

Saudi Arabia.

Yeah, but then what is meant by that insertion? That in the future we will work on other protocols that the one including 16 and 17. What does that mean? That after the three years we will have another meetings organizational session and select a new protocol and work.

What does that mean? Would appreciate clarification.

In the TR we have paragraph 16 which lists four protocols. We need to select one to be the second protocol 17 have a list which is future protocols. So once we are done with priority

protocol early protocols, then we go to work on the other future protocols. So what we are saying now that we will select one of these four. So we are left with three under paragraph 16. And what we are saying here based on the proposals that came from Columbia, that these three will be will go to be among the other protocols listed in paragraph 6:17.

So as I see no further request to the floor. So the committee has just concluded this stage of its consideration of Agenda Item 4. The Committee will resume its consideration of Agenda Item 3 entitled Organizational Matters. I will suspend the meeting to proceed to informal consultation to discuss decision making. Rules of the committee Meeting is suspended.

So now I'm resuming the formal meeting.

The floor is open now.

Jamaica, please. Go ahead.

Sherwood. Like to thank the the African group for the proposal and we appreciate the spirit of compromise in which it was made. We also appreciate the explanations given by Nigeria regarding the threshold. And this is a proposal that we can definitely give some favorable consideration to. Thank you, Chair.

Thank you, Boland. Thank you, Chair. I would like to tackle a little different topic and just to inform that the amendment to the stakeholder proposition was submitted and I would like now to say a few words about this amendment. I'd like to underline that I'm speaking on behalf of the 27 EU member states and it is a long standing position of the EU member states that we advocate for inclusivity and transparency of each intergovernmental process and we believe that it can only be achieved by full and meaningful participation of Ulster. Negotiations of the Framework Convention on International Tax Cooperation should not depart from this rule.

Therefore, the EU member States will support measures that allow other stakeholders to effectively participate in this process. To this end, we would like to introduce an amendment to the draft decision on participation of international organization, civil society and other relevant stakeholders proposed by the Chair. The EU member States are convinced that this amendment will allow to increase inclusivity and participation of stakeholders in this important process. The proposed language is not new at the UN and it takes from one of the most recent modalities on stakeholder participation, namely fa.

Saying that I would like also to reflect this in the record that the amendment was submitted on behalf of all 27 EU member states and not only by Poland. Thank you very much.

Thank you.

So now I don't think we will be able to take any more interventions because it's six o' clock and we are going to lose the interpretation in few minutes. And also we need to close the meeting because it's six now. So I will end with some remarks about the organizational matter. So tomorrow I'm gonna give some ideas how we can see a possibility of work, how can move forward.

So this would be some ideas that you will see to give some clarity to everyone here. And then everything will go to the pro and we'll start sorting out because any idea we are presenting include it's embedded inside it a lot of questions that need to be answered in order to make sure that the whole mechanism will work. We appreciate everyone pairing with us in this because this time is different from the first committee. It is massive thing that we need to make sure that this will work on the right way. This will facilitate and make our life and your life easier and make sure that the quality of work work will be high enough that we can rely on it in the future.

So now every day with we are working in different scenarios and how things can work in different ways and every time we put any ideas we get a lot of questions inside it that we need to answer in order to make sure it's working in the proper way. But tomorrow we'll share some of these ideas, giving just a little bit of clarification. Also I would like to say that tomorrow will not have a morning session. Tomorrow we will have in the morning informal informal consultations for anyone who would like to join the informal, informal consultations and the formal session will be the afternoon session. All of this will be all these remarks.

The Secretariat will circulate this, this remarks tonight by email through E Delegate. So I think, I think at this point, that's all and thank you all and have a good night. Thank you. Bye.

I'm sorry, it's the, um, procedures, so I need to adjourn the meeting. So the meeting is adjourned. It.